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<\/a><\/p>\nHere are few of Buffett’s paragraphs that seriously impressed me:<\/p>\n
The American Tailwind<\/strong><\/p>\n On March 11th, it will be 77 years since I first invested in an American business. The year was 1942, I was 11, and I went all in, investing $114.75 I had begun accumulating at age six. What I bought was three shares of Cities Service preferred stock. I had become a capitalist, and it felt good.<\/p>\n Let’s now travel back through the two 77-year periods that preceded my purchase. That leaves us starting in 1788, a year prior to George Washington’s installation as our first president. Could anyone then have imagined what their new country would accomplish in only three 77-year lifetimes?<\/p>\n During the two 77-year periods prior to 1942, the United States had grown from four million people – about 1\/2 of 1% of the world’s population – into the most powerful country on earth. In that spring of 1942, though, it faced a crisis: The U.S. and its allies were suffering heavy losses in a war that we had entered only three months earlier. Bad news arrived daily.<\/p>\n Despite the alarming headlines, almost all Americans believed on that March 11th that the war would be won. Nor was their optimism limited to that victory. Leaving aside congenital pessimists, Americans believed that their children and generations beyond would live far better lives than they themselves had led.<\/p>\n The nation’s citizens understood, of course, that the road ahead would not be a smooth ride. It never had been. Early in its history our country was tested by a Civil War that killed 4% of all American males and led President Lincoln to openly ponder whether “a nation so conceived and so dedicated could long endure.” In the 1930s, America suffered through the Great Depression, a punishing period of massive unemployment.<\/p>\n Nevertheless, in 1942, when I made my purchase, the nation expected post-war growth, a belief that proved to be well-founded. In fact, the nation’s achievements can best be described as breathtaking.<\/p>\n Let’s put numbers to that claim: If my $114.75 had been invested in a no-fee S&P 500 index fund, and all dividends had been reinvested, my stake would have grown to be worth (pre-taxes) $606,811 on January 31, 2019 (the latest data available before the printing of this letter). That is a gain of 5,288 for 1. Meanwhile, a $1 million investment by a tax-free institution of that time – say, a pension fund or college endowment – would have grown to about $5.3 billion.<\/p>\n Let me add one additional calculation that I believe will shock you: If that hypothetical institution had paid only 1% of assets annually to various “helpers,” such as investment managers and consultants, its gain would have been cut in half, to $2.65 billion. That’s what happens over 77 years when the 11.8% annual return actually achieved by the S&P 500 is recalculated at a 10.8% rate.<\/p>\n You should sit down with a cup of tea and read Buffett’s entire Chairman’s letter. Click here.\u00a0<\/strong><\/a><\/p>\n Netflix’s explosive growth<\/strong><\/span><\/p>\n + It has 139 million paying customers.<\/p>\n + It’s in 190 countries.<\/p>\n Two major bullish pieces on Netflix over the last couple of days:<\/p>\n — The New York Times<\/em> “Netflix Is the Most Intoxicating Portal to Planet Earth.\u00a0Instead of trying to sell American ideas to a foreign audience, it’s aiming to sell international ideas to a global audience.” Click here.\u00a0<\/a><\/strong><\/p>\n — Fast Company writes “<\/em>\u00a0Netflix has overwhelmed the conversation around popular culture for two reasons: 1) It’s producing hundreds and hundreds of hours of content a year-Netflix released approximately 80 movies last year!-so it is literally seeking to become all of pop culture. And 2) Netflix the company delights in being opaque in a way that only inspires more interest and obsession. So with that in mind, we are kicking off a week-long series today called Netflix Changes Everything.<\/strong><\/a><\/p>\n Netflix hasn’t re-reached its 2018’s highs — yet…<\/p>\n